When a Tax Is Imposed on a Good, the

question 83

Multiple Choice

When a tax is imposed on a good, the

• A)supply curve for the good always shifts.
• B)demand curve for the good always shifts.
• C)amount of the good that buyers are willing to buy at each price always remains unchanged.
• D)equilibrium quantity of the good always decreases.

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Definitions:

Scienter

Knowledge of wrongdoing or fraudulent intent, particularly in legal contexts involving deception.

Section 11

Often refers to a specific provision in a legal document or piece of legislation; the exact meaning depends on the context.

Securities Act of 1933

A U.S. legislation enacted as a result of the stock market crash of 1929, requiring that offers and sales of securities are registered, providing investors with truthful information on securities.

Liability

Legal responsibility or obligation that arises from actions or as a result of a contractual agreement, potentially requiring the liable party to compensate for damages or losses incurred.